It was back in 2006 when Amadeus first underwent the task of having an independent consulting firm study and analyse the reality of Saudi travel agencies, their situation and the opportunities to further grow and evolve in a competitive way. We have just organised the launch of a new report based on that very same sample of agencies and providing tell-tale findings on how these agencies –whose structure has not changed since then- fared up until now. You will not be surprised to read one of the survey’s results was that those travel agencies which adopted Amadeus’ new generation IT solutions saved over 20% in cost and increased their agents’ productivity by 15% due to improved air reservation systems and greater productivity.
The report How GDS can improve cost efficiency and optimise business for travel agencies, commissioned by Amadeus and conducted by the independent company Hermes Management Consulting, raised the interest of the Saudi travel sector during our presentation events in Riyadh and Jeddah.
This study – which is the first of its kind to complete a 360 analysis of a given market – offers an in-depth understanding of business and leisure travel agencies in Saudi Arabia by examining their business models, processes, cost drivers and productivity levels. It also allows comparison of results with the similar one conducted six years ago with the same agencies before adopting Amadeus solutions.
The report identifies factors to effectively add value to leisure and business travel agencies in the Kingdom of Saudi Arabia. These include the introduction of service fees and mark-up management to increase revenue, increasing cross-sell levels, the adoption of online bookings and improvement of the online travel agency experience, reducing administrative costs by integrating front and back-office systems and also enhancing marketing.
The positive outcome still encourages travel agencies to reach even higher profitability by further integrating non air bookings in their IT platform.
We at Amadeus are committed to continue supporting the Saudi travel industry. We want to grow hand in hand with our travel partners and will carry on illuminating the path ahead with our independent thought-leadership industry reports.